Gabe Newell confirmed that Valve will be entering the console business during an interview at the Video Game Awards on Friday.

Speaking to Kotaku, Mr. Newell didn’t elaborate what a Steam console would look like — whether it would be a Linux-based Steam OS or a Windows-based HTPC made in partnership with an OEM — but made it clear that his company was dedicated to putting PC gaming in the living room.

Possibly, but Gaben was pretty vocal about his disgust for Windows 8, its app store and the direction Windows is headed in general - which is why they've been focusing on the Linux Steam and porting over all of their titles.

I suppose it's related to the new button at the upper right-hand corner of the Steam window?Big Picture Release

I don't quite get it... either Valve will jump into the crowded console business trying to get developers to port games to them or if it's Windows based, they'll start competing with pre-built gaming PCs (which have no problem attaching to "living room" stuff). Only Apple can pull stuff like this off without being a little niche product that no one cares about

__________________"The computer programmer says they should drive the car around the block and see if the tire fixes itself." [src]